INVC NEWS
Lucknow : The Yogi government in Uttar Pradesh has initiated a groundbreaking new excise policy, promising substantial reductions in country-made liquor prices while bolstering the state’s treasury. Let’s explore the pivotal elements of this policy and its potential to reshape alcohol consumption dynamics and revenue generation in the state.

Simplifying Liquor Categories

Under the guidance of Excise Commissioner Senthil Pandian C, the new policy streamlines the categorization of country-made liquor into four segments, a significant shift from the previous nine categories. This simplification aims to enhance transparency and ease of monitoring, benefiting both consumers and the government.

Embracing Grain Alcohol

Central to the reduction in liquor prices is the government’s push towards promoting grain alcohol over spirit-based liquor. This policy encourages in-state production of grain alcohol, eliminating the need for imports from states like Punjab and Haryana. This not only reduces import duties but also contributes to state revenue through GST and license fees.

Pricing Dynamics

Despite maintaining stable liquor rates, the new policy introduces changes in the pricing of specific categories. For instance, 42.8-degree liquor, previously priced at ₹90, will now be available at ₹85. Moreover, a new category featuring 36-degree liquor has been introduced, priced at ₹75. The rates for sugar-based liquor remain unaffected.

Revenue Enhancement Strategies

To bolster revenue streams, the government has introduced innovative strategies. Introducing franchise fees for the first time aims to establish partnerships with top global brands alongside UP’s distilleries. This not only diversifies the market but also fosters collaboration with renowned international distillers.

Strengthening Licensing Measures

In a bid to further increase revenue, establishments are granted the provision to purchase double the liquor quantity for bottling purposes if there is a surge in demand. This, coupled with a 50 paise per liter reduction in beer export fees, aims to fortify Uttar Pradesh’s position in the beer export market.

Infrastructure Upgrades

The new policy addresses concerns related to mismanagement and misuse of existing provisions. Notably, liquor stores now have the option to develop a 100-square-feet permit room, facilitating the consumption of chilled beer on the premises. This enhances customer experiences while curbing illicit drinking and related crimes.

 Innovative excise policy

The innovative excise policy by the Yogi government underscores its commitment to economic growth and responsible governance. By overhauling liquor categorization, adjusting pricing strategies, and introducing revenue-boosting initiatives, the policy strives to strike a balance between consumer satisfaction and fiscal prosperity.

FAQs About the New Excise Policy

1. Will the new excise policy lead to an increase in liquor prices?

• No, the policy aims to effectively categorize liquor without an overall price increase.

2. How does promoting grain alcohol benefit the state?

• Promoting grain alcohol reduces import dependence, saving on duties, and boosting state revenue.

3. What is the significance of introducing franchise fees?

• Franchise fees encourage collaboration with international distillers, diversifying the market and increasing revenue.

4. How does the policy address concerns about liquor store mismanagement?

• The policy allows liquor stores to create permit rooms, enhancing customer experiences and reducing illicit drinking.

5. Is the government considering further policy changes in the future?

• The policy remains dynamic, and the government is open to necessary adjustments for the benefit of all stakeholders.